PERTH (miningweekly.com) – ASX-listed Tyranna Resources has inked an agreement to acquire privately held US Cobalt, in order acquire the Goodsprings cobalt and base metals project, in the US.
Tyranna in March entered into an option agreement to acquire US Cobalt as part of its diversification strategy aimed at capitalizing on the increased demand for battery minerals.
Under the terms of the agreement, Tyrannah will now acquire US Cobalt by way of an off-market script for script takeover offer, which will see the company issue more than 141.1-million of its own shares, at a price of 1.7c a share, and a cash payment of A$100 000, for the exclusive option agreement, which has already been paid.
The shares will be issued subject to shareholder approval, with 25% of the consideration shares subject to voluntary escrow arrangements until February 2019.
“This is an outstanding deal for Tyranna and our shareholders which we have secured via a script issue. Historical mining results suggest that this area holds some of the highest grade cobalt mines that can be found in the district,” said Tyranna MD Bruno Seneque.
“No modern mining techniques have been used here and we are confident that good exploration and mining methods will handsomely reward the company here at Goodsprings.
“The acquisition of US Cobalt adds Goodsprings cobalt and base metals project as another high value asset to Tyrannah’s project portfolio and enhances our value as a diversified resource exploration and development company.”
Goodsprings comprises 329 mining claims covering 6 580 acres located in southern Nevada.